Document of The World Bank FOR OFFICIAL USE ONLY ,4g 0 ? Yg3-Jo i Report No. 5260-JO STAFF APPRAISAL REPORT HASHEMITE KINGDOM OF JORDAN GREATER AMMAN WATER SUPPLY AND SEWERAGE PROJECT November 30, 1984 Water Supply and Sewerage Division Europe, Middle East and North Africa Regional Office This documnt has a restricted distribution and may be uLsed by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS Currency Unit = Jordan Dinar (JD) JD 0.370 = US$1.00 1/ JD 1.00 = US$2.70 JD 1.00 = 1,000 fils MEASURES AND EQUIVALENTS Kilometer (km) = 0.62 mile Square Kilometer (km2) = 0.386 square mile Hectare (ha) = 2.47 acres Millimeter (mm) = 0.03937 inches Centimeter (cm) = 0.3937 inches Meter (m) = 39.37 inches Cubic Meter (m3) = 264 US Gallons Cubic Meters per second (O3/sec) = 22,800 US Gallons per day Liter (1) = 0.264 US Gallons Liters per second (1/sec) = 22,800 US Gallons per day Liters per capita per day (lcd) = 0.264 US Gallons per capita per day Milligram per liter (mg/i) = 1.0 part per million ABBREVIATIONS AND ACRONYMS AGTP - Ain Ghazal Treatment Plant AWSA - Amman Water and Sewerage Authority EGMC - East Ghor Main Canal GOJ - Government of Jordan JVA - Jordan Valley Authority LRAIC - Long Run Average Incremental Cost MCM - Million Cubic Meters MOP - Ministry of Planning NPC - National Planning Council NRA - Natural Resources Authority PMCS - Project Management and Construction Unit USAID - United States Agency for International Development WA - Water Authority of Jordan WSC - Water Supply Corporation GOJ'S AND WA'S FISCAL YEAR JANUARY 1 - DECEMBER 31 1/ As of July 1, 1984. FOR OMCIAL USE ONLY STAFF APPRAISAL REPORT HASHEMITE KINGDOM OF JORDAN GREATER AMMAN WATER SUPPLY AND SEWERAGE PROJECT TABLE OF CONTENTS Page No. LOAN AND PROJECT SUMMARY ........... ............ .............. i I. SECTORAL CONTEXT ..................................... 1 A. Background ............................................... ..... 1 B. Water Resources .................................. 2 C. Water Supply ....... ................ 2 D. Sewerage ........................ 2 E. Government Strategy in the Sector ..............co .. 3 F. Institutional Aspects .......................... . .. 4 G. IDA/Bank Role in the Sector . . 5 H. Rationale for Bank Involvement . . 6 II. POPULATION, SECTOR SERVICE AND DEMAND IN PROJECT AREA 7 A. Project Area .................... 7 B. Population Projections ........................... 7 C. Population Served and Standard of Services in Project Area ................................. 8 D. Demand for Services .............................. 10 III. THE PROJECT ...... o................ ...... ..o ... ... 12 A. Genesis ......................................... .... 12 B. Sewerage and Sewage Disposal Master Plan ......... 12 C. Project Objectives ..... .......................... 13 D. Technological Aspects ..... ....................... 14 E. Project Composition . ................... .......... 15 F. Cost Estimates ...... ............................. 15 G. Project Financing Plan ............... o.......... 17 H. Project Implementation . . ......................... 18 I. Procurement ...................................... 19 J. Disbursement ...............L.................... 21 This report is based on the findings of an appraisal mission to Jordan in June 1984. Mission members included Lars Rasmusson, Arun Banerjee, and Xavier Legrain. This document has a rsuricted distribution and may be used by recipients only in the performance of | their official duties. Its contents may not otherwise be disclosed without World Dank authorization. TABLE OF CONTENTS (Continued) Paxe No. IV. THE BENEFICIARY ...................................... 23 A. Organization and Management ........ .............. 23 B. Institutional Development ....... ................. 24 C. Staffing and Training ............................ 24 D. Billing and Collection ........................... 25 E. Accounting ..................................... 26 Fe Audit ................................ . ...... . 26 G. Insurance ..................................... 27 V. FINANCE .............................................. 28 A. Past Performance and Present Position .... ........ 28 B. Tariff - Cost Recovery ........ ................... 28 C. The WA's Sources and Applications of Funds .... ... 29 D. Future Financial Performance ..................... 30 VI. ECONOMIC ANALYSIS AND PROJECT JUSTIFICATION .... ...... 32 A. Socio-Economic Analysis .......... .. .............. 32 B. Average Incremental Costs ......... .. ............. 32 C. Affordability ................. ................... 33 D. Institution Building .............. ............... 33 E. Project Risks .. .................................. 33 VII. AGREEMENTS REACHED AND RECOMMENDATIONS .... ........... 34 ANNEXES ANNEX 1 - Table I - Population and Waste Water Flows ..... 35 - Table 2 - Population Connected to the Sewage Systems ...................... 36 - Table 3 - Cost Estimates ....................... 37 - Table 4 - Monitoring Indicators .... ............ 38 - Table 5 - Estimated Schedule of Disbursements .. 39 - Table 6 - Current Water and Sewerage Tariffs ... 41 TABLE OF CONTENTS (Continued) Page No. - Table 7 - Income and Expenditure Statement Greater Amman Water Operations ...... 43 - Table 8 - Income and Expenditure Statement Greater Amman Sewerage Operation .... 44 - Table 9 - Income and Expenditure Statement Water Authority Consolidated ........ 45 - Table 10 - Sources and Applications of Funds Water Authority Consolidated ........ 46 - Table 11 - Balance Sheet Water Authority Consolidated ........................ 47 - Table 12 - Rate of Return ....................... 48 ANNEX 2 Major Assumptions Used in Financial Projections ..... 49 ANNEX 3 Additional Information Available in Project File . ...... ................................ 51 CHARTS Chart No. 1 - Project Implementation Schedule ............... 52 Chart No. 2 - Organizational Structure ...................... 53 iAPS IBRD No.18434 - Greater Amman Area, Sewerage and Sewage Disposal Systems HASHEMITE KINGDOM OF JORDAN GREATER AMMAN WATER SUPPLY AND SEWERAGE PROJECT LOAN AND PROJECT SUMMARY Borrower: The Hashemite Kingdom of Jordan. Beneficiary: The Water Authority or Jordan (WA). Amount: US$30 million equivalent. Terms: 15 years, including three years of grace, at the standard variable interest rate. Relending Terms: Same as the Bank loan. The WA will bear the foreign exchange and the interest rate risk. Project Description: The project would improve the water supply and sewerage services in the Greater Amman area and would include: (i) extension and rehabilitation of about 100 km of water mains; (ii) construction of about 350 km of trunk and collection sewers; (iii) construction of two sewage treatment works; (iv) supply of operating and maintenance equipment; and (v) consultant services for engineering, project management and construction supervision. The project will continue the institutional development efforts started under two previous Bank loans. The main beneficiaries of the project would be the low and middle-income families in the project area. Because of the recent establishment of the WA, initial difficulties might be encountered in its institutional and organizational development. This risk is, however, minimized through to-e provision of adequate advisory staff in finance, management and technical matters. - ii - Estimated Cost*: Local Foreign Total (US$ Mill ons) -- Water Distribution Systems 0.97 2.25 3.22 Sewage Systems 7.35 17.11 24.46 Sewage Treatment Works 3.86 4.36 8.22 Operational and Maintenance Equipment - 0.27 0.27 Consulting Services 1.11 0.32 1.43 Land Acquisition 0.11 - 0.11 Base Cost 13.40 24.31 37.71 Physical Contingencies 1.22 2.37 3.59 Price Contingencies 2.27 4.16 6.43 Total Cost 16.9 47. i7 Interest During Construction 8.67 8.67 Total Financing Required fiIIh2 Financing Plan Proposed World Bank loan 30.00 30.00 Government contribution 16.59 9.51 26.10 Funds from operations 0.30 - 0.30 Total Financing L"24 Estimated Disbursements: Bank FY 1985 1986 1987 1988 1989 1990 1991 1992 Annual 0.6 7.5 8.8 5.2 2.9 1.0 2.4 1.6 Cumulative 0.6 8.1 16.9 22.1 25.0 26.0 28.4 30.0 Economic Justification: Least cost program. * Cost estimates do not include import duties and taxes, from which the project is exempt. HASHEMITE KINGDOM OF JORDAN GREATER AMMAN WATER SUPPLY AND SEWERAGE PROJECT I. SECTORAL CONTEXT A. Background 1.01 Jordan is a semi-desert country with a land area of about 91,000 sq. km with the only access to the sea along a 25 km coastline in the south where the seaport of Aqaba is located. The most remarkable physical feature of the country is the structural split of the Red Sea/Jordan Rift Valley which has created a long narrow trough of land, rulnning from Aqaba in the south to the foot of Mount Hermon in Syria in the north. Much of the land in this trough, which includes the Jordan Valley and Wadi Araba, is below sea level with the water level in the Dead Sea at -392 m. To the east, the land rises steeply to a plateau with an average altitude of about 800 m with peaks rising to over 1,500 m. This plateau constitutes the uplands of Jordan and is characterized by a more temperate climate and relatively abundant rainfall. Further towards the east, rainfall decreases rapidly and the land slopes gently to the Arabian Desert. 1.02 The Housing and Population Census conducted in 1979 estimated the population at 2.15 million, of which some 60% is urban.- About 90% of the population lives in the northwest quadrant of the country. The net growth rate is about 3.8% per annum. 1.03 Administratively the East Bank of Jordan is divided into five governorates: Amman, Irbid, Balqa, Kerak and Ma'an. The governorates are further subdivided into districts, subdistricts and nahias, the smallest units of regional administration. The total number of nahias in the country is 44, encompassing about 1,017 population centers. 1/ Urban communities are defined to include all principal towns of each governorate, district, sub-district and the urban population as computed corresponds roughly to the population in towns with 10,000 or more people. -2- B. Water Resources 1.04 About 80% of Jordan's land area is desert. Availability of water depends largely on rainfall, ranging from moderate amounts (600 millimeters per year) in the northern uplands to negligible amounts in the southern and eastern deserts, over 85% of which is lost through evaporation. As the more conveniently located sources of municipal and industrial water supplies have become fully utilized, surface and groundwater in other areas, hitherto used for agriculture, will have to be transported at high cost over long distances and/or steep gradients to meet these needs. The rapid growth of the economy in recent years and the associated increase in municipal, industrial and agricultural water demands, coupled with Jordan's high rate of natural increase, have put serious pressure on the country's limited water resources; and water scarcity may become a principal constraint to economic growth. In these circumstances, it is crucial for Jordan to realize the maximum benefits from its limited resources by the continued development and implementation of a sound sector strategy and through prudent water resource management. C. Water Supply 1.05 About 85Z of the urban population is supplied through house connections. However, due to source inadequacy, the supplies in many areas are intermittent; and over 302 of the water produced for municipal water supply is lost through leakage, due in part to corroded pipes in the major distribution systems. In 1979 about 60% of the rural population was provided with piped water supply, with the remainder supplied through private wells or tankers operated privately or by the Water Authority (WA); with ongoing extension works this is expected to reach about 80% by 1985. Even where public piped water supply exists, however, there is a danger that intermittent supplies can lead to contaminated water and effluents entering the system through leaks when it is depressurized. This risk is particularly acute where septic tanks and cesspits are used. D. Sewerage 1.06 At present, only four cities (Amman, Salt, Aqaba, and Jerash) have sewage collection and treatment systems, which serve about 302 of Jordan's population. Sewage systems are being constructed in -3- Irbid, Zarqa, and Ruseifa; and plans are underway for systems in ten medium size cities, six in north Jordan and four in the south, eight of which are included under the Bank financed Eight Cities Water Supply and Sewerage Project (Loan 2425-JO), which will provide services to another 20X of the country. In areas where sewage systems do not exist, the wastes are discharged in septic tanks, cesspools and similar facilities. Despite significant efforts to provide sewerage in recent years, rapid growth in urbanization, rising standards of living and extensive but uncoordinated land development have caused individual waste water disposal facilities to become inadequate, particularly in high density areas and in soils with limited percolation capacity. Occassionally, overflows or improper disposal of cesspool waste occur, creating major health hazards. Severe outbreaks of cholera have occurred in Jordan, the latest in 1981. The infant mortality rate has declined in recent years but still remains high (60 per 1000 live births in 1982) as does the incidence of water-related infectious diseases. This suggests the need for continuing efforts to improve water supply and sanitation conditions in the country. E. Government Strategy in the Sector 1.07 The scarcity of water and the high cost of its developmei.t have long been recognized by the Government. Based on a number of studies over the years, including the recently completed Bank Water Sector Study (Report No. 4699-JO), available water resources are projected to be adequate to meet municipal and industrial needs beyond the turn of the century with a modest increase available for irrigation if the Government pursues appropriate policies in the following areas: (i) proper allocation of known resources and new resource development (which includes transfer of water from water surplus to deficit areas, continuing exploratory work for ground water sources and further development of remaining surface sources); (ii) prudent water resource management by strengthening the sector's institutional capability; (iii) quantity and quality control of water and wastewater; (iv) development of policies related to reuse of waste water; (v) development of appropriate cost recovery and other financial policies; and (vi) manpower planning and training. 1.08 Aided by sound Government policies, water conservation is generally practised throughout the country. The Government has made impressive strides in developing the sector. It has embarked on a program of large water projects to help relieve water shortages, particularly in the upland areas of northwest Jordan. During the current Five-Year Plan period (1981-85), almost 162 of public sector investment is allocated for water and irrigation, which is about seven times the corresponding actual investments in the previous plan period -4- (1976-80). The Government has also adopted a policy for adequately treating all sewage from industries and municipalities which are sewered so that effluents may be suitable for reuse in agriculture. The Government, with the assistance of the United States Agency for International Development (USAID), is in the process of developing a data management system, which will monitor quantities and physical and chemical qualities of water resources in the country. The newly created Water Authority (WA) (para. 1.09) will be responsible for maintaining and policing this system. In order to deal with the problems of leakage and intermittent water supply, the WA is developing a program to systematically detect and repair leaks and to improve water distribution. These efforts should help reduce the risk of bacteriologically unsafe water. F. Institutional Aspects 1.09 In the past, the sector was plagued with problems of inadequate coordination due to the large number of institutions involved in the water supply and sewerage sector. This often led to duplication of efforts and sub-optimal investment decisions. As recowmended in the Bank's Water Sector Study, an autonomous agency, the WA, was created to take over the responsibilities for providing water supply and sewerage services, water resource management and monitoring, planning, development and allocation, and water quality monitoring for the whole of Jordan. This has set the institutional framework necessary to better husband critically scarce water resources in order to sustain economic growth. The thrust of the WA's work will be to formulate policies and take appropriate measures to augment the country's usable water resources, to efficiently allocate these among the various competitive users and to ensure that the water allocated is used economically. The present organization of the WA is expected to evolve as it develops to fully assume its mandated role, and the WA is studying its organizational needs over the long-term in order to modify its organizational structure, if necessary. Bank funds have been provided for a management advisor to assist the WA in this work (para. 4.05). 1.10 In view of the growth of sector-related institutions and operational facilities, the demand for trained personnel has become an urgent matter. In the past most of the institutions involved in the sector had some training programs, and several education institutions provided some sector-related training, but this was generally ad hoc, unfocussed and suffered from a lack of coordination. Many of those who were trained were siphoned off by the private sector or by neighboring countries where salaries are substantially higher. With the assistance of USAID, WA is in the process of implementing a national training program to tackle both short- and long-term problems in this area. -5- 1.11 Tariffs for urban municipal water supply have generally been in line with the cost of these services and sewerage charges have been generally adequate. In Amman, the total income from water and sewerage revenues does cover total operating expenditures of water and sewerage and debt service. Ineffective control of groundwater extraction by industry and agriculture, where tariffs or extraction fees have not been imposed or are below costs of production, has resulted in serious depletion of groundwater in populated areas. Consequently, water for munic:nal supplies has had to be transported from distant locations at high costs. A tariff study for municipal and industrial water uses under th_ Zarqa/Ruseifa project (Loan 2213-JO) will help develop the necessary financial strategies (para. 5.05). G. IDA/Bank Role in the Sector 1.12 IDA commenced its assistance to the sector in the 1960s. The FY62 Credit 18-JO for $2.0 million and FY64 Credit 43-JO for $1.5 million supported water supply development respectively in Amman and in the cities of Ramallah-El Bira, Jerusalem, Nablus, Azraq, Irbid, and Zarqa. In the 1970s, the Government concentrated its efforts on developing the water supply and sewerage services of Amman, which also resulted in the creation of the former Amman Water and Sewerage Authority (AWSA). The FY73 $8.7 million Credit 385-JO and FY78 $14 million Credit 780-JO assisted in the development of AWSA and helped finance investments for Amman's rapidly expanding needs for additional water supply and sewerage facilities. These projects have been successfully completed, and completion reports for Credits 385-JO and 780-JO have been prepared. No Project Performance Audit Reports have yet been prepared. The lessons learned from the above projects include the need for better coordination in planning and execution of projects and the particular importance of reducing unaccounted-for water in a largely water deficit situation. The completion report for the FY73 project (Sec.79-491) also noted that while substantial efforts had gone into the institutional development of AWSA. weaknesses remained, particularly in its financial department. These factors have been taken into account in the design of later projects. 1.13 In FY83, the Bank provided further assistance through Loan 2213-JO of $17.0 million for the improvement of the water supply and sewerage services for the cities of Zarqa and Ruseifa. A prime project objective was to strengthen the Water Supply Corporation (WSC), the project implementing and operating agency, which was responsible for water supply and sewerage in areas outside Amman and the Jordan Valley Authority. Technical and financial advisors have already been engaged, and measures to improve operations and financial management are underway. With the recent reorganization of the sector, responsibility for the execution and operation of the project has been taken over by the WA, which will be assisted by these advisors in its organization.ul development. The Bank also approved in Kay 1984, a loan of -6- $30.0 million (Loan 2425-JO) to the WA for the Eight Cities Water Supply and Sewerage Project. H. Rationale for Bank Involvement 1.14 The Bank's recently completed Water Sector Study made several recommendations concerning the sector's organization and financial policies; outlined a strategy to develop available water resources for meeting the needs of competing users; established general recommendations for appropriate waste water disposal and formulated associated investment programs. Based on this, the Bank's overall strategy in the sector includes assistance to the Government in implementing policies to efficiently manage and allocate the country's scarce water resources, executing technically sound and economically feasible projects to increase usable water resources (including effluent reuse), strengthening sector institutions including training and establishing sound pricing policies to assure economic use and conservation of water and to allow operating entities to be financially viable and self-sustaining. 1.15 The proposed project has been designed to support the Bank's overall strategy. Specifically, the project would present the Bank with a continuing opportunity to play an essential role in providing assistance and advice, and in ensuring proper follow-up actions for (i) the development of appropriate management and organizational systems f ,r the WA; (ii) judicious selection and formulation of potential projects and related investment strategies; and (iii) improvements in operational areas such as financial planning, accounting, auditing, manpower planning and training. - 7 - II. POPULATION, SE.CTOR SERVICE AND DEMAND IN PROJECT AREA A. Pro ect Area 2.01 Amman, the capital of the Hashemite Kingdom of Jordan, has experienced rapid growth in the past two decades, and has become a major metropolis surrounded by growing suburbs and outlying commlunities. The economy of the Amman Region has, in recent years, been characterized by a continuing shift in relative importance from the agrizultural sector to the industrial and service sectors. Most of the industrial activities are concentrated in the Zarqa and Ruseifa areas. 2.02 The Greater Amman Area is defined as an area lying within a 25 kilometer radius of the center of Amman. The Project Area falls within the Greater Amman Area and comprises the municipalities of Amman, Wadi es Sir, Suweileh, Baqa'a Camp and the Suburban ring (Map IBRD 18434). B. Population Proiections 2.03 Population projections through the year 2000 for the Greater Amman Area and the Project Area, with its related municipalities and drainage zones, are presented in Annex 1, Table 1 and summarized below: Municipalities 1979 1990 2000 C (000)~ Amman 649 1,020 1,305 Suburban Ring 16 74 250 Baqa'a Valley 45 45 45 Wadi es Sir 25 39 62 Suweileh 21 31 44 Sub-Total Project Area 756 1,209 1,706 Other Areas 517 848 1,281 Total Greater Amman Area -8- Drainage Zones in Project Area Amman 687 1,128 1,615 Baqa'a Valley 64 72 83 Wadi es Sir 9 14 21 Total 760 12 2 The population in the project area by the year 2000 would correspond to about 57Z of the population in the Greater Amman area. 2.04 Population projections for the Greater Amman Area have been prepared taking into account employment, income, land use and building restrictions. The saturation population of the Amman municipality is projected to be realized within the period 1990-2000, while saturation for the suburban municipalities is projected to occur well beyond the year 2000. As the population approaches saturation levels the average growth rates are expected to decline and therefore the projected annual average growth rates for the periods 1979-1990 and 1991-2000 have been assumed at 4.46% and 3.80% respectively. C. Population Served zmnd Standard of Services in Project Area 2.05 The water supply in the Greater Amman is based on the following water sources with a total present capacity of about 39 million m3 per year (MCM): (i) various local wells mainly located within the water distribution area with a capacity of 20 MCM; (ii) the Azraq well field located some 85 km east of Amman with a capacity of 12 MCM; and (iii) the Qastal and Siwaqa wellfields located south of Amman with a capacity of 7 MCM. About 85X of the population is connected to the public water supply system the remainder being served by public taps (4Z) and water tankers (11X). The water consumption for connected supply averages around 85 liter per capita per day (lcd). The unaccounted-for water-'' amounts to about 44% of water produced, which is comparatively high. With improved water supply and distribution system 1/ Unaccounted-for water is the difference between volume of water produced and water sold divided by volume of water produced. It includes inaccuracies in water metering, non-metered water used at public hydrants, and leakages. - 9 - pressure the rate of leakage has gone up, which, however, il expected to be reduced through ongoing rehabilitation or replacement of o'-der water mains. The water supply is for the time being sufficient. The water supply facilities are generally well operated and maintained but still some 6Z of water samples being taken are bacteriologically unsatisfactory. 2.06 In Amman about 77% of the population is connected to the sewage system (in 1984) and in the outlying municipalities only about 4%. The remaining population relies mainly on cesspool installations with the effluent percolating into the ground. 2.07 In the Greater Amman Area, there are three municipal sewage disposal systems. These are (i) the Amman system; (ii) the King Hussein Medical Center system with an average sewage treatment capacity of about 1500 m3/day; and (iii) the Municipality of Salt system with an average sewage treatment capacity of about 2,440 m3/day. The Amman system, with the Ain Ghazal Treatment Plant (AGTP), is by far the most extensive. The sewage collection operates by gravity apart from two minor areas served by pumping stations . Because of low water consumption the sewage effluent is of high strength and on occasions the BOD5 (Five-Day Biological Oxygen Demand) has reached values of up to 1000 mg/Il.2- 2.08 The operational experience from the AGTP could be summarized as follows: Ci) the treatment plant has been in operation since 1969 and incorporates the activated sludge process and anaerobic sludge digestion and was designed for an average flow of 60,000 m3/day and for a biological loading of 15,000 kg/day; (ii) its actual capacity would be limited to about 30,000 m3/day, but it is presently treating about 45,000 m3/day for a tributary population of about 590,000; (iii) the sludge handling facilities, digesters and filter presses have recently been extended; and (iv) the plant performance has been adversely affected by the high strength sewage. 2.09 The cesspool installations operate with varying degrees of efficiency depending upon loadings, soil conditions and maintenance. Maintenance costs (pump-outs) can be significant and in many instances the cesspool effluent overflows or is pumped illegally into the streets, creating a sanitary nuisance and a health hazard. 2/ A common value would be about 250 mg/l. - 10 - D. Demand for Services 2.10 The Greater Amman Area is water-deficient. This situation could be further aggravated as population grows and industrial development continues. Alleviating measures in the area of water resources management and conservation and waste water recycling are thus being emphasized. A water supply project for the Greater Amman Area based on the East Ghor Main Canal (EGMC), fed by the Yarmouk river, is also presently being implemented by the Jordan Valley Authority (JVA). Salient project data can be summarized as follows: (i) it is designed for a capacity of 45 MCM or 123,300 m3/day; (ii) it includes treatment facilities consisting of sedimentation and rapid sand filtration and a series of pumping plants for a pumping head of about 1,300 meters; and (iii) it is estimated to cost about US$llO million equivalent, is financed by the United States Agency for International Development (USAID) and is scheduled to be commissioned by early 1985. 2.11 With the completion of the EGMC project the water availability in the Greater Amman Area will increase to about 84 MCM. Future water source development will be integrated for the northwest quadrant of Jordan covering the Governorates of Amman, Balqa and Irbid, for which feasibility and engineering studies have been undertaken including primary and secondary conveyance systems. 2.12 The main data for water demand projections and water source developments for an integrated system may be summarized as follows: (i) past and projected water demands amount to 67 MC-M by 1982, 101 MCM by 1990 and 172 MCM by 2005; (ii) the existing water source capacity for municipal use is 66 MC14; (iii) the capacity of water sources under development totals 65 MCM (Wadi Arab 20 MCMI' and EGMC 45 MCM); (iv) the potential capacity of future water sources which include Mukheiba, Wadi Wala and Wadi Mujib, and the River Yarmouk (Makarin Dam) is estimated at 132 MCM; (v) with the commissioning of water sources under development the water production capacity would be sufficient to about mid-1990s; and (vi) the major investments to be undertaken in the intermediate term would consist of a continuous strengthening of the water conveyance and distribution systems. 2.13 The WA is presently extending the sewage disposal facilities for the Amman area by the construction of stabilization ponds in the area of Schirbet es Samra the most important features of which may be summarized as follows: (i) the sewage is to be conveyed to the stabilization ponds by gravity in a transmission main with a length of about 40 km and a capacity of 147,000 m3/day to be laid from the site for AGTP; (ii) the 3/ To serve the Irbid area. - 11 - stabilization ponds are designed with a capacity of 68,000 m3/day (35,750 kg BOD/day) and to provide adequate treatment to enable effluent reuse; (iii) the works are scheduled to be commissioned by mid 1985 and would then together with AGTP provide satisfactory treatment capacity for the projected sewage flows from the Amman drainage zone up to early 1990s; and (iv) the investment costs (US$49 million equivalent) are financed by local funds. 2.14 Considering that the water supply for the Greater Amman Area and for the northwest quadrant of Jordan would be adequate for the time being and that the Amman sewage treatment facilities are being extended the priorities for the Greater Amman Area are: (i) to extend the sewerage network in densely populated areas; (ii) to provide - r satisfactory sewage disposal facilities for areas outside the Amman municipality; and (iii) to strengthen and rehabilitate the water distribution system. 2.15 In order to enable a satisfactory recycling of scarce water resources and to minimize related health risks adequate sewage treatment would be required. Effluent quality standards are proposed to be 30mg/l as a monthly average for both BOD5 and SS with faecal coliform organisms as MPN (Most Probable Number) to be less than lOO/lOOml in 802 of samples, which are satisfactory. Wastewater effluents from the treatment plants will be discharged into river beds where they will either percolate into the groundwater or finally be collected in impoundments such as the King Talal Dam. In this process the water quality will further improve thus making it suitable for most types of irrigation. - 12 - III. THE PROJECT A. Genesis 3.01 The National Planning Council (NPC)4' entered into an agreement for professional services with James M. Montgomery Consulting Engineers, Inc., and DMJM International (USA consulting firms) on May 17, 1980 to prepare a Master Plan for wastewater disposal for the Greater Amman Area. The study, financed by USAID, was completed in February 1982. The same consulting firms were engaged by the NPC in July 1982 for the final engineering for a first stage extension. Subsequent changes in the scope of work particularly regarding the AGTP (para 3.10) necessitated a renegotiation of the consultant contract and since no agreement could be reached the consultant assignment was terminated in December 1982. 3.02 A local consulting firm (MIMAR) in association with Howard Humphreys, U.K., was appointed in February 1984 for the final engineering for the sewage treatment plants for Wadi es Sir and Baqa'a Valley which are expected to be completed by end 1984. While the NPC was responsible for the preparation of the Master Plan, the WA became responsible for the completion of the engineering designs. 3.03 At the completion of the Master Plan by mid-1982, Bank's financial assistance was requested. In the missions which followed, the Bank was involved in the identification and preparation of a project package and in engaging consulting firms. B. Sewerage and Sewage Disposal Master Plan 3.04 The Master Plan covers the period through the year 2000. Major considerations taken into account in its elaboration were: (i) to optimize the sewerage coverage with the use of cesspool facilities in fringe population areas, and where effluent percolation can take place without causing groundwater pollution; (ii) to adapt the sewage treatment requirements to effluent reuse possibilities; (iii) to evaluate works required for different drainage zones and the extent to which combined 4/ The Ministry of Planning (MOP) was established in November 1984 aad assumed the responsibilities of the former NPC. - 13 - treatment facilities for several zones would be feasible; and (iv) to establish criteria for phased extension of proposed sewerage and sewage disposal works. 3.05 The Master Plan recommends the subdivision of the Greater Amman Area into ten drainage zones, with one for the Amman municipality. Each zone would be provided with sewage disposal facilities for biological treatment. Stabilization ponds have been recommended where sufficient land is readily available, while otherwise the processes of extended aeration, activated sludge or trickling filters have been proposed. 3.06 The implementation of the Master Plan will be phased for reasons of constraints in financial and project implementation capacity. Based on priorities established for sewerage coverage and sewage treatment requirements the first phase extension of the Master Plan would comprise: (i) extension of the sewage systems in the Amman and Upper Wadi Abdoun-' areas; and (ii) extension of sewage and sewage disposal systems in the Baqa'a Valley and Wadi es Sir drainage areas. C. Proiect Obiectives 3.07 The major project objectives would be: (i) to extend the sewerage services in the project area to about 94% of total population (in 1989) from present coverage of about 67% through rehabilitation and extension of the sewage systems (Annex 1, Tables 1 and 2); (ii) to reduce groundwater pollution by decreasing the infiltration of cesspool effluents within the Greater Amman area through the reduction in the number of cesspool installations so that by 1989 only about 45% of the population will be served by cesspools as compared to 60% of the population in 1984; (iii) to enable recycling of the waste-water for agricultural purposes through the provision of satisfactory sewage treatment facilities; (iv) to improve the water supply services and to reduce water losses through distribution system rehabilitation; (v) to assist in the development of the WA and in the establishment of proper financial procedures in order to achieve financial self-sufficiency through adequate charges for water supply and sewerage services; and (vi) to prepare for next stage extension of water supply, sewerage and sewage disposal facilities on a priority basis. 5/ This area covers the Suburban Ring, the eastern part of Wadi es Sir and the southern part of Suweilah. - 14 - 3.08 The project would be in concordance with the country objectives in water resources management and conservation and would have a significant impact on the living conditions and the health standard through improved excreta disposal facilities and through reduced ground and surface water pollution. D. Technological Aspects 3.09 The alternatives to extending a sewage system or maintaining on-site excreta disposal facilities have been evaluated and the following conclusions reached: (i) in the Amman and Upper Wadi Abdoun areas which are comparatively densely populated and already provided with a sewage interception system it is feasible to extend the sewerage coverage to the bulk of the population; (ii) in the Baqa'a Valley area where the major portion of the proposed sewerage coverage relates to the very densely populated refugee camps the extension of a sewage system is the only feasible alternative; (iii) in the Wadi es Sir area there is a prevalent risk for ground water pollution and the population density is almost as significant as in the Baqa'a Valley area ; and .iv) for the Baqa'a Valley and Wadi es Sir areas a comparative cost estimate has indicated that a sewage system would be less expensive than on-site installation because of the latter's high operational costs. The sanitary sewage and the storm water systems are and will be retained separately throughout the Greater Amman area. 3.10 For the Amman drainage zone the Master Plan recommended the expansion of the AGTP, but since it was rapidly approaching overloaded conditions the WA had proposed, as an immediate relief measure to construct stablization ponds on a temporary basis. In a later development the WA decided to construct and maintain the stabilization ponds on a permanent basis and also to maintain AGTP at its present capacity. Future enlargement in the sewage treatment capacity might also be accommodated at the stabilization ponds through the installation of aerators. 3.11 The Master Plan suggested that secondary treatment for major treatment works would consist of roughing filters to be followed by the activated sludge process. Such an arrangement would be comparatively high in energy consumption and for the proposed treatment works at Wadi es Sir and Baqa'a Valley trickling filters have been evaluated to be more feasible. This would also satisfy the effluent quality requirements. It has also been evaluated to be economical to transport the raw sludge by tankers from the proposed new treatment works to the sludge treatment facilities at the AGTP. Investigations are being made for the potential use of the treated sludge for soil conditioning. - 15 - 3.12 The basis for overall system design is as follows: (i) the per capita sewage flow which has been assumed at 80% of the water consumption varies between 70 to 105 liter per day depending on the area served; (ii) the peak flow factor has been assu.ned at twice the average sewage flow; (iii) the interceptors are designed for the projected flow by the year 2,000; and (iv) the treatment works will be extended in phases with the first phase to cover the period up to the year 1990. The trunk mains will, where needed, be provided with a PVC or similar lining as a corrosion protection. Sewer connections are being included up to the property border lines. 3.13 Alternatives selected and various project ccmponents recommended for implementation represent the moast feasible least cost solutions at a discount rate of 10%. The proposed phasing of the various project components and the design criteria used are appropriate. E. Project Composition 3.14 The project includes the following major components: (i) about 1OOkm of water distribution network; (ii) about 350km of trunk mains and secondary sewers; (iii) sewage treatment works for Baqa'a Valley and Wadi es Sir drainage zones with a capacity of 8,000 and 2,400 m3/day (maximum flow) respectively; (iv) operation and maintenance equipment; and (v) consultant assistance for engineering, project management and construction supervision. F. Cost Estimates 3.15 Annex 1, Table 3 shows a breakdown of the cost estimates which are summarized below: - 16 - Local Foreign Total Local Foreign Total X of -------JD -- -us$ Equivalent--- Total --- ~~~-Million- Base Costs - Water Distribution Network 0.36 0.83 1.19 0.97 2.25 3.22 7 - Trunk mains and Secondary Sewage System 2.72 6.33 9.05 7.35 17.11 24.46 51 - Treatment Works 1.43 1.61 3.04 3.86 4.36 8.22 17 - Operational and Maintenance Equipment - 0.10 0.10 - 0.27 0.27 1 - Land Acquisition 0.04 - 0.04 0.11 - 0.11 - Sub-Total 4.55 8.87 13.42 12.29 23.99 36.28 76 Engineering, Project Management and Construction Supervision 0.41 0.12 0.53 1.11 0.32 1.43 3 Contingencies - Physical 0.45 0.88 1.33 1.22 2.37 3.59 8 - Price 0.84 1.54 2.38 2.27 4.16 6.43 13 Sub-Total 1.29 2.42 3.71 3.49 6.53 10.02 21 Total 6i.A25 1. L7.66 16.89 3.4 7.7 R2 Interest During Construction - 3.21 3.21 - 8.67 8.67 Total Financing Required 6.25 14.62 20.87 56.8 39i.51 56.4Q - 17 - 3.16 The cost estimates are based on preliminary engineering design for the various project components. The base costs are mid-1984 price levels and the physical contingencies average 10X. The price contingencies for both civil works and material and equipment and for both local and foreign costs components have been estimated at 7.5% for 1984, 71 for 1985 and 6S thereafter. The cost estimates do not include direct import duties and taxes as the WA is exempt from those. 3.17 The engineeering, project management and construction supervision costs are estimated at about US$1.43 million equivalent which correspond to about 440 and 22 man-months for local and foreign consultants respectively. Consultant costs are more expensive than in neighboring countries because of the high cost of living in Jordan. 3.18 The foreign exchange component is estimated at US$39.6 million equivalent (including capitalized interest) or 70Z of total costs. This reflects assumptions made regarding goods to be imported, civil works contracts to be awarded to foreign and local contractors and the average foreign cost components of locally manufactured material and equipment. G. Proiect Financing Plan 3.19 The project financing plan is given below: Local Foreign Total % ------(US$ Million) ------ Requirements (para. 3.15) 16.9 39.6 56.5 100 Financing - Proposed Bank Loan - 30.0 30.0 53 - Government Contributions 16.6 9.6 26.2 46 - Available from operations 0.3 - 0.3 1 Total _kd am 5Ai5 uQ 3.20 The proposed Bank loan would be made to the Government, which coordinates all foreign financing for public sector investments through the MOP on standard terms for Jordan, i.e. for 15 years including 3 years grace. The Government would on-lend the Bank loan to the WA on the same - 18 - terms and conditions under a separate subsidiary loan agreement. The WA would bear both the foreign exchange and interest rate risks. Interest and other charges during construction over the grace period and the front-end fee would be added to the subsidiary loan. The execution of the subsidiary loan agreement satisfactory to the Bank would be a condition of loan effectiveness. During negotiations agreement was reached with the Government that it should provide all local funds to WA as an equity contribution. H. Project Implementation 3.21 The present status of project preparation can be summarized as follows: (i) preliminary design has been prepared for the water distribution and sewage systems and final design will be completed ahead and in consonance with the works to be executed; and (ii) final design has been completed for the sewage treatment works, for which one contract would be awarded for civil works and equipment supplies and installation. 3.22 For the implementation of the project the WA has established a separate project management and construction supervision unit (PMCS) which has also been responsible for the preparation of the project. During project implementation the PMCS would be assisted by engineering consultants for (i) project management; (ii) tender evaluation and preparation of contract documents; (iii) finalization of detailed engineering and review of contractors' drawings; and (iv) supervision of construction works and material and equipment supply and installation. These consultant services will be provided by the consulting firms undertaking the engineering design. The WA is in the process of acquiring land for the sites of the sewage treatment works, and expects this to be completed by end 1984. Based on past experience this should pose no problem. 3.23 A master bar chart for project implementation has been completed (Chart 1) and detailed CPM networks for individual contracts will be prepared by respective contractors. A project monitoring and reporting system including selected financial performance indicators (Annex 1, Table 4) was discussed and agreed upon during project appraisal. Agreement was reached at negotiations that the WA should prepare quarterly progress reports to be sent to the Bank, commencing from the first quarter of 1986. 3.24 An analysis of the project implementation schedule, which covers the period 1985-1989, shows that: (i) the execution of the sewage treatment works is on the critical path and invitation of tenders should take place in early 1985; (ii) the trunk mains would be executed - 19 - concurrently with the treatment works; and (iii) the execution of the secondary sewage systems would, in the early stage of project implementation, concentrate on the Amman and Upper Wadi Abdoun drainage areas and in the later stage on the Baqa'a Valley and Wadi es Sir areas. Projected population coverage by sewer connections during the project implementation period is shown in Annex 1, Table 2. 3.25 The WA has sewer regulations which require properties to be connected once the service has become available. This may pose some financial difficulty for the lower income group but based on previous experience from the Amman area less than 2Z of the beneficiaries may need financial assistance. Assurances were obtained at negotiations that the WA would, if required, assist in making adequate financial arrangements to enable low income families to be connected to the sewage system. 3.26 The unaccounted-for water in the Amman area remains high despite efforts being made on water meter replacements and distribution system rehabilitation. The operational control for the various distribution zones is well developed and fairly accurate data are available on water distributed and water sold. Proper actions are being taken and the WA is expected to allocate sufficient funds and manpower resources and to engage consultant assistance to enable a reduction in unaccounted-for water to a target level of 25Z by 1990. The WA is preparing a program for achieving this target and progress will be monitored through periodic progress reports. 3.27 During negotiations assurances were obtained from the WA that within six months following the closing date of the loan it will prepare and submit to the Bank a project completion report reviewing the planned objectives and achievements of the project including costs and benefits derived and performance and contribution of all parties associated with project execution and system operation. I. Procurement 3.28 Proposed contracts and their respective cost estimates (base costs) are shown in the table below: - 20 - Procurement Method 1/ Proiect Element ICB LCB Other Total - US$ Million Water Distribution Network 1.56 2.56 4.12 (1.00) (1.64) (2.64) Sewage Systems 25.02 6.25 31.27 (15.88) (4.04) (19.92) Treatment Works 10.42 - 10.42 (6.74) - (6.74) Operational Equipment 0.38 - 0.38 (0.38) (0.38) Consulting Services - - 1.43 1.43 - - (0.32) (0.32) Total 37I 8.81 1.43 47.62 (24.00) (5.68) (0.32) (30.00) I/ Figures in parenthesis are the respective amounts to be financed by the Bank. 3.29 It is estimated that 15 civil works and equipment supply contracts would be subject to ICB and would have an aggregate value of about 802 of total costs. Equipment supply contracts estimated to cost more than US$550,000 and civil works contracts estimated to cost more than US$1,400,000 will be procured through International Competitive Bidding in accordance with Bank Group guidelines. The Borrower intends to employ a domestic consulting firm in association with a foreign firm under Terms of Reference acceptable to the Bank and in accordance with Bank guidelines for use of consultants. Other equipment supply and civil works contracts with an aggregate cost not exceeding US$2,000,000 and US$7,000,000 respectively would be awarded on the basis of local competitive bidding procedures, which are satisfactory. For material and equipment to be procured under ICB a domestic preference of 15Z or the import duty whichever is lower would be used for the purposes of bid evaluation. Documents and awards for all contracts under ICB would be subject to prior review by the Bank. It is anticipated that a foreign contractor will be awarded the contract for the sewage treatment works which would represent about 23Z of total project costs. 3.30 For all civil works contracts expected to take more than one year, allowance for price increases is considered desirable. The Government has, because of poor experience with price adjustment provisions, passed regulations to discourage their inclusion in construction contracts. However, assurances were obtained at - 21 - negotiations that the WA should for civil works contracts expected to take longer than 24 months allow for the inclusion of a price adjustment provision for major materials with administrative prices (cement and fuel). J. Disbursement 3.31 Statistical evidence in the Bank shows that disbursements for the water supply and sewerage sector in the EMENA region extend over an eight year period. Completion of the proposed project is scheduled for December 31, 1990 and taking into account the status of project preparation and the relative efficiency of the implementing agency it is reasonable to assume that the loan will be fully disbursed, including payments of retention monies, by December 31, 1991. In order to expedite disbursements, a revolving fund of $1.5 million (equivalent on average to about three months disbursements) will be opened by the Government; this will be replenished on the basis of standard documentation for eligible reimbursable expenditures. The implementation schedule from which the disbursement schedule is derived, includes a very large time contingency over that recommended by the WA. A disbursement period of seven and a half years is about the same as the regional profile for water supply and sewerage projects. A forecast of disbursements is shown in Annex 1, Table 5. 3.32 The proposed Bank loan of US$30 million would be disbursed as follows: Amount Percent of US$Million Expenditures Category Description Equivalent to be Financed 1. Equipment and Material, 2.4 lOOZ of foreign Supplies and Installaticn expenditures and 85% of local expenditures. 2. Civil Works 24.1 lO0Z of foreign expenditures and 60% of local expenditures 3. Consultant Services 0.3 100X 4. Unallocated 3.2 TOTAL T3I - 22 - 3.33 The extension of the water supply and sewage systems in the Greater Amman area is a continuous process and contracts are awarded according to local procurement procedures. For such contracts retroactive financing for expenditures incurred after JuLy 1, 1984 is recommended for an amount of up to US$3.0 million equivalent, which represents 10% of total Bank loan. Disbursements would be made against standard documentation except for contracts below US$10,000 equivalent to be claimed under statements of expenditures. - 23 - IV. THE BENEFICIARY A. Organization and Management 4.01 The WA, created in December 1983 under Law No. 34 of 1983, has been assigned wide responsibility for water resources management and for the provision of water supply and sewerage services. It is an autonomous agency reporting to the Prime Minister's office, enjoying independent financial and administrative status. It has a twelve-member Board of Directors, of which ten are ex-officio and two are from the private sector. The Board is chaired by the Prime Minister. Headquarters in Amman are managed by a President and a Secretary General who deputizes for him. Both positions are appointed by the Council of Mlinisters. The WA's organization is expected to develop in keeping with the gradual taking over of the functions and staff of all water agencies in Jordan. The present organization which is still tentative is shown on Chart 2. The headquarters in Amman has the following departments: Water Supply Operations, Sewerage Operations, Finance and Aocouuting, Administration, Water Resources Management, Planning and Project Implementation. Operation and maintenance of water supply and sewerage is carried out in three regional offices, each under a manager, but supervised by related headquarters departments. The regional offices are also subject to control by Water Councils composed of representatives from the public and private sectors. 4.02 The WA has already taken over the Amman Water and Sewerage Authority (AWSA), previously responsible for water supply and sewerage in the municipality of Anman, the Water Supply Corporation (WSC), previously responsible for bulk water supply and for water supply and sewerage in areas outside of Amman and the Jordan Valley, the water resources branch of the Natural Resources Authority (NRA), the water department of the JVA - previously responsible for developing water resources and providing water supply in the Jordan Valley - and the municipal water supply departments within the Greater Amman Area. Some 300 municipal water supply departments that still operate their own systems, will be transferred to the WA on a phased basis before the end of 1985. 4.03 The number of the WA's staff engaged in water supply and sewerage operations is about 3,000, composed principally of about equal numbers of employees taken over from the WSC and AWSA. This is equivalent to about 12 employees per one thousand connections served which is reasonable given the fact that the WA's responsibilities are spread over the whole country and that the population density outside Amman is low. In addition, another 750 employees have been added to the WA in conjunction with its takeover of the functions of the water - 24 - resources branch of the NRA. 4.04 Through the creation of the WA, staff from the different organizations are brought together to work in consolidated units and a number of previously overlapping functions are being eliminated. While this will contribute to increased productivity, additional staff would still have to be recruited to operate new systems being or to be built and by end-1989 when this project is to be completed, the WA staff is projected to reach about 5,000. B. Institutional Development 4.05 Institutional assistance is being provided to the WA by the Bank under the Zarqa/Ruseifa Project (Loan 2213-JO) and by the USAID, with whom the Bank is cooperating closely. Bank funds under Loan 2213-JO will be used to engage a management advisor to assist the WA to develop its organizational structure, establish staffing and training needs, develop an appropriate management information system and propose personnel policies. A technical advisor has already been engaged to assist the WA to improve operating and maintenance practices, to set up a data collection system for project planning purposes, and to prepare major projects. A study is also being undertaken for the design of appropriate tariff structures with recommendations to be made on feasible tariff levels, taking into account the need for water conservation, the- affordability to the poor, and the generation of adequate revenues to allow the WA to remain financially viable. 4.06 USAID's assistance is being provided through two projects for improvement of water supply and sewerage services in the city of Irbid and the cities of Zarqa and Ruseifa (cofinanced by the Bank), and through the provision of technical assistance. The USAID funds are being made available for the development of training programs including the provision of physical facilities and for the engagement of a financial advisor to assist the WA to develop its accounting and financial management systems. Under the technical assistance program support has been provided to three local consulting firms engaged by the NPC/WSC for the design of water supply and sewage systems in ten cities, eight of which were included in the Eight Cities Project. C. Staffing and Training 4.07 The WA's salary levels for its technical staff are competitive, - 25 - and attracting and retaining qualified technical staff do not pose a problem. However, for financial staff the salary levels are substantially lower and there is a general shortage of qualified accountants in Jordan. The issues related to salary structure and other personnel policies will be addressed by the Management Advisor (para 4.05). 4.08 The WA has an ongoing training program financed largely by the USAID. The p'rogram provides for training of managerial and professional staff abroad and operating staff at local institutions. The financial advisors are providing on-the-job training to the accounting staff in implementing a public utility accounting system. Several facilities exist in Jordan-the Amman Polytechnic Institute, the Vocational Training Corporation, the University of Jordan and the Yarmouk University--which now provide training for technicians in civil, mechanical, electrical and chemical engineering. Programs have been or are being developed for training in water supply and wastewater engineering and specifically for sewage treatment plant operators, in view of the number of plants to be commissioned in the near future. 4.09 The USAID has, based on a study of the overall training requirements for the sector, prepared a proposal for a long term training program which is satisfactory. This has been incorporated in its "Water Systems and Services Management Project" and sufficient funds have been provided for its implementation. D. Billing and Collection 4.10 The WA bills some of its large volume customers in its Amman operations on a monthly basis and residential consumers quarterly. The consumers outside Amman are on a two month billing cycle. The billing for Aunan is fully computerized and operated by the WA's staff, while that outside Amman is done by a service bureau and some billing is done manually. The WA is planning to expand its own computer facilities to do all its billing in-house by the end of 1985. 4.11 The WA's accounts receivable represent about four months of sales and can be improved. The WA's management is devising systems to provide incentives for improvements in bill collection. Progress in reducing the proportion of outstanding receivables would be monitored throughout project implementation (Annex 1, Table 4). - 26 - E. Accounting 4.12 The WA's accounting system for Amman follows the standard public utility format, is on an accrual basis, and is reasonably well kept; that outside Amman is on a cash basis, as prescribed for government agencies. Although these accounts may be readily translated into the more generally used utility format, they are not entirely satisfactory from an operating point of view. The WA recognizes this weakness and has decided to extend the accrual system to its entire operations. The system will be computerized and, through appropriate coding, will produce accounts to satisfy both the government-prescribed system and the public utility format with accruals. 4.13 The financial advisor (para. 4.06) has already prepared a manual of accounts for implementation in early 1985. Meanwhile the accounting personnel are being trained. Implementation will be monitored through periodic progress reports. F. Audit 4.14 The WA's Amman operations have been annually audited by a local iiAependent auditing firm. The audit reports have been of acceptable quality and prepared in sufficient detail. The operations outside Amman have until now been subject to a system of expenditure control and final audit by the Government Auditing Department. Since the accounting system of all the WA's operations will be converted into a standard public utility format beginning in 1985, assurances were obtained from the WA under the Bank loan for the Eight Cities Project that (i) from fiscal 1985 onwards all the WA's accounts would be audited by independent auditors acceptable to the Bank and experienced in public utility accounting systems; (ii) the audited financial statements and the auditors report would be forwarded to the Bank within six months after the end of each fiscal year; and (iii) for 1984, the Government's Auditing Department would continue to audit the WP's accounts for its operations outside Amman and that copies of its audit report and financial statements would be forwarded to the Bank within six months after the end of the fiscal year. It was agreed to repeat these conditions in the proposed loan. - 27 - G. Insurance 4.15 The WA carries insurance with a Jordanian insurance company which follows the general guidelines regarding insurance for a Government agency. These primarily relate to workmen's compensation and third party liability for vehicle and equipment operators. In view of the WA's expanding operations, the adequacy of the insurance coverage would be reviewed periodically. - 28 - V. FINANCE A. Past Performance and Present Position 5.01 The financial position of the WA has to be interpreted in the context of the past performance of those organizations (AWSA and WSC) it has taken over. It reflects the nationwide scope of its operations, the scarcity of water which makes it imperative to protect sources and to treat and where feasible to recycle effluents, the low average consumption levels, the locational mismatch between water sources and consumption centers which necessitates the transportation of water over long distances and steep gradients, and the relatively high construction costs. 5.02 The WA derives most of its revenues from water and sewerage charges based on metered water consumption. In addition, the WA also collects a one-time sewerage connection fee equal to 25X of the annual rental value of the property and a 42 annual tax on the same rental value for twenty years. For small communities without a piped water supply and for a substantial nomadic population, the WA provides a tanker supply or a free supply from water points for which the actual cost is up to ten times that in the larger centers. For reasons of equity and affordability, the Government assumes a portion of this cost. On this basis, the WA's net revenues have been sufficient to cover its operating costs, debt service and a small portion of its investment costs. 5.03 At the end of 1983 the WA had a current ratio of 2.6 and a debt/equity ratio of 24/76 which reflects the significant role of the Government in the financing of the WA's facilities. B. Tariff-Cost Recovery 5.04 The WA's tariffs are proposed by its Board of Directors and subject to approval by the Council of Ministers. In the past, water tariffs in its Amman and non-Amman urban operations were slightly different, and these tariffs were high. Annex 1, Table 6 provides detailed information on existing tariffs. The different tariffs are being maintained for the time being but subject to recommendations to be made in the proposed tariff study (para. 4.05) the WA may introduce a uniform tariff for all its operations. Water tariffs in its piped supply operations which average about JD 0.264 per cubic meter are adequate and in line with the cost of these sertices, while the cost of providing tanker supply and free water point service is partially supported by the Government. - 29 - 5.05 Based on the current system of sewerage charges, the WA's average revenue is about JD 0.230 per cubic meter, which is financially adequate. Such charges are generally less than the costs Laintain cesspool installations. The proposed tariff study will include the determination of appropriate sewerage charges for cost recovery and the means for collecting them which may be through a combination of tariffs, user charges and levies. While the original study would have covered only the operations of the former WSC, its scope has now been revised to include the WA's entire water supply and sewerage operations. The study will be carried out by the WA's Financial Advisor with consultant assistance and the results of the study are expected to be submitted to the Bank for review by no later than December 31, 1985, following which appropriate tariff structures and water and sewerage charges will be implemented. C. The WA's Sources and Application of Funds 5.06 The table below shows the estimated sources and applications of funds for the WA for the period 1984-1989. FY1984-1989 JD US$ , (Millions)--- Sources of Funds Internal Cash Generation 64.24 173.45 22 Government Contribution 98.57 266.14 33 Customer Contributions 6.29 16.98 2 Loans 127.61 344.55 43 Total 2 7180.12 Application of Funds Capital Expenditures 240.26 648.70 81 Debt Service 55.50 149.85 19 Increases in Working Capital 0.95 2.57 Total 29.1 8QQ - 30 - 5.07 The WA's investments during the period would be substantial, whereas the benefits would be derived over a long period. The WA will also have to assume the liabilities associated with the substantial capital expenditures on water resources development being undertaken by the JVA. Funds generated from internal sources and customer contributions would provide about 24X of the overall funds required of which l9Z would be for debt service, leaving 5% towards capital investments and increases in working capital. D. Future Financial Performance 5.08 The financial forecasts for the proposed project as well as for the WA as a whole and the assumptions on which they are based appear in Annex 1, Tables 7-11, and Annex 2. 5.09 The period covered by the projections will be one of rapid growth for the WA. By the year 1990 its volume of water sales is expected to be 60Z higher than that of 1984, and with the new sewage systems related volumes to be billed will be almost four times as much. The volume of water supplied by tankers and at water points will only increase slightly. The revenues from water sales would go up about 160Z and the revenues from sewerage and the taxes collected for sewerage services would go up about six times. In the same period operating expenses would go up about 2.5 times. The difference between revenues and expenses would leave a margin which would be sufficient for the WA to meet its financial objectives. Agreement was reached under the Bank loan for the Eight Cities Project that the WA will from fiscal year 1985 onwards (i) for its metered water services maintain or adjust tariffs to provide sufficient revenues to cover its operating and maintenance expenses (excluding depreciation), debt service or depreciation whichever is higher and increases in working capital and to finance commencing in fiscal year 1987 not less than 5X and from fiscal year 1989 onwards not less than 10% of the average annual investment cost in each consecutive three-year period comprising one actual and two forecast years; and (ii) for its sewerage operations, implement a system of user charges, fe-s and levies sufficient to cover full operating and maintenance cost (excLuding depreciation) and debt service or depreciation whichever is higher. For its water services by tankers and at water points, agreement was obtained from the Government that it would compensate the WA for any deficit; resulting from such operations. Agreement was also reached under t. e Bank loan for the Eight Cities Project that the WA would provide th4 Bank, three months before the beginning of each fiscal year, with cc-pies of its forecast budget for the fiscal year, financial projections fc- the following two years as well as its proposals for adjustments in tari?fs. It was agreed to repeat these conditions in the proposed loan. - 31 - 5.10 In the period 1984-90, the WA's debt-equity ratio would vary from 28:72 to 38:62, with debt peaking in 1987-88 at 41:59 which is very satisfactory and also indicates the important role that the Government will continue to play in sector financing. In the same period its assets would grow about 2.5 times. Average water tariffs would have to go up about 60S in this period, only slightly above the adjustment necessary for inflation, which also confirms the adequacy of the present water tariffs. Charges for sewerage would not have to grow as much because of savings from economies of scale. The rate of return on net fixed assets in operation would be about 5-62 during 1987-90 and should improve with additional sewerage connections and with the introduction of measures to reduce quantities of water consumed but not accounted for (para. 3.26). The projected water supply and sewerage charges would be within the customers ability and willingness to pay (paras. 6.02, 6.03). Internal cash generation should cover debt service adequately. - 32 - VI. ECONOMIC ANALYSIS AND PROJECT JUSTIFICATION A. Socio-Economic Analysis 6.01 The project alternatives and components selected represent the most feasible and least-cost solutions at a discount rate of 102. The phasing proposed and the design criteria used are appropriate. The project would provide sewerage service in the Greater Amman area to about 150,000 urban poor, or about 30Z of the population which would benefit from the project. 6.02 The benefits accruing from a modern sewage collection and disposal system would be substantial but cannot be meaningfully quantified. In assessing these benefits the reduction of the incidence of waterborne infectious diseases and of the pollution of waters used for various purposes, the improvements in the general aesthetic conditions and in the quality of life, and the enhancement of opportunities for economic development are all important factors. However, using the revenues from sewerage as proxy and a minimum measure of the benefits accruing from this project the rate of return would be about 82. 6.03 Additional related socio-economic benefits to be derived from this project are as follows: (i) improved water supply and extended sewage collection systems would result in enhanced hygenic standard and subsequently have a favorable impact on general health conditions; (ii) the reduction in cesspool effluents percolating into the ground would enable the continued use of the groundwater source for domestic water supply thus avoiding its replacement by a far more costly alternative; and (iii) the provision of treated effluents to be used for irrigation purposes will contribute to the agricultural development. B. Average Incremental Costs 6.04 In Jordan the long-run average incremental cost (LRAIC) of water at a discount rate of 10 varies between JD 0.370/m3 in areas where water is locally available to JD 0.490/m3 for areas such as Amman, where part of the water has to be pumped over long distances (e.g. from the EGMC). At present more than 30Z of water sold is charged at the highest block tariff, which exceeds the LRAIC. This confirms the present appropriateness of the tariff levels and a willingness to pay for the actual costs of the water. - 33 - C. Affordability 6.05 The water tariffs and sewerage charges as projected would not impose any serious burden on even the lowest income segment. The lowest quintile of average monthly household income in the Amman area is about JD 108. Assuming an average household size of five persons and an average per capita water consumption of 65 liters/day, the average water and sewerage bill would be about JD 5.00/month, which represents about 4.62 of the household income. This is considered to be affordable. By comparison, a household would pay up to JD 5 per month for emptying cesspools alone. D. Institution Building 6.06 The project will continue the Bank's assistance to Jordan in reinforcing and strengthening the sector institution started under previous credits and loans. Bank assistance in this and the Eight Cities Project is particularly timely because of the recent creation of the WA, which, in a pronounced way, demonstrates the Government's determination to improve the management of the sector. The project will provide a continuing opportunity to help develop the technical, financial and managerial capabilities of the WA staff. E. Project Risks 6.07 Major project risks, if any, would relate to: (i) initial difficulties to be encountered in the development of the WA, which could affect the timing for project implementation; and (ii) the possibility of not achieving projected number of sewer connections that could affect the WA's income and overall financial viability. 6.08 All necessary actions have been or will be taken in order to assist the WA in its development for the timely completion of the project such as the appointment of qualified staff, advisors and consultants. Present trends indicate a willingness among the population to connect to the sewage system when available which also in general provides cost savings. An improved tariff structure would make related costs for the water supply and sewerage services more affordable to the lower income group and subsequently enable projected revenues to be realized. The risks are considered to have been reduced to a reasonable level through the precautionary measures undertaken. - 34 - VII. AGREEMEN15 REACHED AND RECOMMENDATIONS 7.01 Agreement having been reached on the issues referred to in Chapters III though V of this report and subject to the condition of effectiveness set forth in para. 3.20 the proposed project is suitable for a Bank loan of US$30.0 million to the WA for a tern of 15 years including a three year grace period, at the standard variable interest rate. - 35 - _-, s ANNEX I Table I of 12 KAsHEYrTE (IflOf OF Dlm_ GREATER ASIAN WA-ER SUPPLY *30 UISDRAE PRJECT Ponulation and ilste Water Flows A. POPULAT4O . M10001 1. Aawn 1.020 1.305 (1.305)" Z. SuburOan Ring 74 250 1621) 3. wadi as Sir 39 6Z (171) 4. Suweileh 31 (79) S. Baqata Cairo 4S ...AI .4 TOTAL JJM &&.au B. POPULATJUX DRAINAGE 2NES t'OOO) 1. an - Amman 1.020 1.305 - Suburban Ring 74 250 - upper wadi es Sir 2S 46 - Southerm Suwelleh . 14 TOTAL JAZZ 2. Baqa'a valley - Bqaa camp 4 45 - Northern Suweilih 22 30 - Ain el Basha 4 6 - Safut -1 _2 TOTAL 7l A 3. Wadi es Sir - Lower bdi es Sir 14 21 C. WuA WE WiTER FLOS a (liter per capita and day. lcd) 1. Aman a5 g5 2. Suburban Ring 95 1OS 3. Wadi es Sir 7S aS 4. Suwe1ieh 60 70 S. Baqa'a Cam 60 70 0. POPtLATrD COWEL t,Arnan - Arman nos. 969.000 1.253.000 2 95 96 - Suburban Ring nos. 70.000 240.000 S 95 96 - Wadi es Sir nos. 23.000 4S.000 2 92 98 - Southern Suweileh nos. 8.000 14.000 X 9Z 9t TOTAL nos. ,tL* nn n* Dn S 94 96 2. Baqa'a valley TOTAL nos. nnnh S 94 95 3. Wadi es Sir Total nos. LIBI il S 92 98 E. PMTe,UTRFO (U per day) 1. A_nn l . z2e 149 .040 2. Raqa'a Valley 3.780 S,110 3. Wal es Sir 975 1.78S j/ Figures within parenthesis indicate estimated saturated population. 2J The flows include residential. anicipal. comerial and industrial contributions. July 30. 1934 Doc. 0481W Disk 0031W - 36 - ANNEX 1 Table 2 of 12 HASHEMITE KINGDOM OF JORDAN GREATER MMAN WATER SUPPLY AND SEWERAGE PROJECT Population Connected to the Sewage Syste 198 1984 1985 198 im8 198 189 19 A. AMMAN DRAINAGE ZONE 1. Total Population: - Amn3an 744 775 808 842 877 913 952 1.020 - Suburban Ring 29 33 37 43 49 56 65 74 - Upper Wadi es Sir 19 19 20 21 22 23 24 25 - Southern Suweileh _ 7 _a 8 -- a 9 9 TOTAL ___ a31 9.nna 1.95 LJ.ZA 2. Population Connected to Sewage System: - Amna nos. 558 597 663 740 789 840 895 969 (2) (75) (77) (82) (88) (90) (92) (94) (9S) - Suburban Ring nos. - 8 30 38 44 52 61 70 (2) - (23) (82) (88) (90) (92) (94) (95) - Upper Wadi es Sir nos. - 4 9 12 15 19 22 23 (2) - (23) (44) (57) (70) (81) (92) (92) - Southern Suweileh nos. - 1 3 5 6 7 8 8 (2) - (14) 44) (571 J70) .(1SI J921 (92) MTAL nos. 1 2927 5 m 9 (2) (70) (73) (81) (87) (89) (92) (94) (94) B. WADI ES SIR DRAINAGE ZONE 1. Total Population 10 11 11 12 12 13 13 14 2. Population Connected to Sewage System: nos. - - - - 10 11 12 13 (2) - - - - (80) (85) (92' (92) C. BAOA'A VALLEY DRAINAGE ZONE 1. Total Population: - Baqa'a Camp 45 45 45 45 45 45 45 45 - Northern Suweileh 18 18 19 19 20 21 21 22 - Ain el Basha and Safut A 4 4 4 5 5 . A TOTAL A Z k5 Z a 2 )I Zz 2. Population Connected to Sewage System: nos. - - - - 47 57 67 68 ( - - - - (67) (80) (94) (94) 0. TOTAL PROJECT AREA 1. Total Population 876 912 952 994 1,038 1,084 1,134 1,214 2. Population Connected to Sewage System: nos. 558 610 705 795 911 986 1.065 1.151 (2) (64) (67) (74) (80) (88) (91) (94) (95) July 31, 1984 Doc. 0481W Disk 0031W - 37 - ANNE 1 Table 3 of 12 H*5M94! WIMCGM* OF 8OROAN KRAATET AMAN MM SUPPLY AND SEWERAGE POJET Gct Est1=tec (JD Thousands) Foreign Currency Exbenditurm- PflamELr CllOMMEM Toa 198 1 9 4t A. IANAN DRAQ;E 21NE 1. Water Distribution System: - s0.0 s5.0 - - - 106.0 70 70.0 2. Sewage System - flILI 1SOO-- 4- 00.0 70 3150.0 Sub-Total A _ 300.J0 1S50L0 -- 4ficl.0 70 3220.0 B. BDAOA VALLEY DRAINAGE ONE 1. Water Distribution System' - - - 200.0 200.0 40.0 440.0 70 308.0 2. Sewage System - 1.700.0 1,700.0 400.0 - 3.800.0 70 2.660.0 3. Sewage Treatment works - Civil Works - 200.0 693.5 493.5 - - 13D7.0 40 554.8 - Equiment - - 200.0 168.0 - - 368.0 100 368.0 4. Land Acquisition 17.5 - -_ - 17.5 - Sub-Total I I5 200* .5 2.56.L5 6i0.L0 MA 6-012.5LS 65 3.90. UADf FS STR DRAGE 20WE 1. Water Distribution Systen" - - - 300.0 300.0 50.0 650.0 70 455.0 2. Sewage System - - 350.0 350.0 50.0 - 750.0 70 52S.0 3. Sew Treatment works - Civil Works - 100.0 487.5 405.S - - 993.0 40 397.2 - Equipment - - 150.0 142.0 - - 292.0 100 292.0 4. Land Acquisition J.Z - - 1.2 - . Sub-Total C 18.2 100.0 97B 15 17 350. 0 0 2,70f2 62 1.66L2 n. DT[AL BASE COSTS A. A3C j,2 3j fl I a 3 LU Ua 23].LZ 66 & ILI E. PHYSICAL CNTUNGECrES (tOX) - 335.0 513.1 375.9 95.0 9.0 1,328.0 - - 78.0 F. A Operational Equipment and Water Meters - 50.0 50.0 - - - 100.0 100 100.0 G. CSIJLTALT SERVICES 65.0 lS.0 230.0 169.0 43.0 4.0 526.0 - 120.0 H. TOTLrAD+EL LSZL JEIU + l An JILA J2LZ6L2 65 9 2= I. 1CE CONTNGEIS 1.9 27S.6 848.9 912.0 309.6 37.3 2.38i.1 65 1.542.0 J. GRN.D TOTAL J 3IL LiULA LZZLI e MA J.6 MUC a.LrM3 65 n ..SZAn .1 The water distribution systems under the Baqa'a valley and Wadi es Sir Orainage Zones covers the nmunicipalities-of Swe1ileh and Wadi es Sir and includes some smaller service reservoirs. July 31. 1984 Ooe. 0481W 01sk 0031W - 38 - ANNEX 1 Table 4 of 12 HASHEMITE KINGDOM OF JORDAN GREATER AMMAN WATER SUPPLY AND SEWERAGE PROJECT Monitoring Criteria For Water Authority Operations 1986 to 1990.1/ I. Technical Water produced (MCM/yr) Water sold (MCM/yr): Domestic Industrial Bulk Water Unaccounted-for water (Z) Water Surcharged for Sewerage (MCMlyr) No. of water connections No. of sewage connections II. Financial and Institutional Average bulk tariff (JD/m3) Average retail tariff (JD/m3) Sewerage surcharge tariff (JD/m3). Debt service coverage Operating expense/cubic meter of water sold (JD) Operating expense/cubic meter of water surcharged for sewerage (JD) Accounts receivable at end of year No. of employees: Water Sewerage Total 1/ Projected figures will be provided during 1985, whereafter these will be compared with acutal data. - 39 - ANNEX 1 Table 5 of 12 Page 1 of 2 HASHEMITE KINGDOM OF JORDAN GREATER AMMAN WATER SUPPLY AND SEWERAGE PROJECT Estimated Schedule of Disbursements (Us$ Million) Bank Fiscal Year Disbursement Cumulative Disbursement and Quarter in Quarter At End of Quarter 1985 Third Quarter 0.1 0.1 Fourth Quater 0.5 0.6 1986 First Quarter 1.3 1.9 Second Quarter 1.8 3.7 Third Quarter 2.1 5.8 Fourth Quarter 2.3 8.1 1987 First Quarter 2.5 10.6 Second Quarter 2.7 13.3 Third Quarter 1.8 15.1 Fourth Quarter 1.8 16.9 1988 First Quarter 1.8 18.7 Second Quarter 1.8 20.5 Third Quarter 0.8 21.3 Fourth Quarter 0.8 22.1 - 40 - ANNX 1 Table 5 of 12 Page 2 of 2 Fiscal Year Disbursement Cumulative Disbursement and Quarter in Quarter At End of Quarter 1989 First Quarter 0.8 22.9 Second Quarter 0.8 23.7 Third Quarter 0.7 24.4 Fourth Quarter 0.6 25.0 1990 First Quarter 0.3 25.3 Second Quarter 0.2 25.5 Third Quarter 0.3 25.8 Fourth Quarter 0.2 26.0 1991 First Quarter 0.5 26.5 Second Quarter 0.5 27.0 Third Quarter 0.7 27.7 Fourth Quarter 0.7 28.4 1992 First Quarter 0.8 29.2 Second Quarter 0.8 30.0 - 41 - ANNEX 1 Table 6 Of 12 Page 1 of 2 HASHEMITE KINGDOM OF JORDAN GREATER AMMAN WATER SUPPLY AND SEWERAGE PROJECT CURRENT WATER AND SEWERAGE TARIFFS Operations Outside Amman Water Tariffs (Urban Areas) Bulk Water Supply - JD .085 per m3 Metered Retail Consumption per month: 0 - 5 m3 - JD .100 per m3 6 - 15 m3 - JD .120 " * 16 - 25 m3 - JD .300 " " Over 25 m3 - JD .400 " " Universities - JD .300 " " Connection Fee - JD2.000 Water Tariffs (Rural Areas) Water Distribution Points - JD .160 per m3 By Tankers: 5 - 6 m3 capacity - JD 2.500 per tanker 10 - 12 " " - JD 3.500 to JD 5.500 per tanker Distribution of water at desert points is free. Sewerage Tariffs Sewer Surcharge - JD .030 per m3 Contribution to construction - 4% per annum of rental value over 20 years Connection fee - 25% of rental value - 42 - ANNEX 1 Table 6 of 12 Page 2 of 2 AMNAN OPERATIONS Water Tariffs Metered Retail Consumption per billing cycle (3 months): 1 - 20 m3 - JD .150 per m3 21 - 40 m3 - JD .250" " 41 - 100 m3 - JD .400 * " Over 100 m3 - JD .500 " " Sewerage Tariffs Sewerage Surcharge - 3D .030 per m3 Contribittion to Construction - 4% per annum of rental value over 20 years Connection Fee - 25Z of rental value - 43 - 1I4SHDIIT KINGI=X UW DRIMN ANNEX I -~ ~~ ~ ~ Table 7 of 12 CTREK ANA UATEt SUPPLY & SlVERAX KR)11J LNmE AND EXPENDIt1RE SrATiJi CPREATER AMMAN LATER OPaT1I 19UZ 1983 1984 1965 1966 1987 1988 1989 199u UATEl PROLMX (cMM) 25.30 27.60 30.10 33.140 36.70 41.U0 44.U0 47.9U 52.2U UNACCOUNTED (PERCENT) 44 41 39 38 37 37 35 34 33 ATR2 SOLD (M) 14.20 16.30 18.40 20.70 23.10 25.80 28.60 31.6o 35.00 ND. or 03MElS 67,050 71.450 7b,300 81.160 86, LU 91,560 97.130 102,830 LU .830 AV&RACE RATE (J.1/al) .270 .346 .362 .357 .543 ..54 .562 .558 .599 --- ~JD MILLI= - REVUU UATER S1AS 3.83 5.64 6.67 7.39 12.55 4. U5 16 07 17.o3 O.97 GDIN IWHL .22 .26 .29 .29 .30 .S2 .33 .34 .36 MAL 8EVEIF 4.05 5.90 6.96 7.68 12.85 14.37 16.40 17 97 I1.33 Meg A:lAIES 1.40 1.53 1.66 1.81 1.98 Z.L5 2.35 2.56 Z.79 FOWII 1 53 1 79 2.18 2.5L 3.L4 4.33 5.48 6.86 b 45 CHECAJIS . 1 . .02 .02 .03 .Ii7 i.3 .22 .33 tINTWICE .91 1.UU 1.08 1.,LS 1.25 1.40 1.53 1.66 1.61 A"ISRATIN .LS .L6 .18 .19 .ZL .23 .25 .27 .3U ea --- ne- a------ -- TIOTAL EXP80ITURES 4.00 4.49 5.12 5.,L 6.64 8. 1 9.74 U.57 13 68 INCrE 1BEFDCEMPREC1AT10N .05 1.41 1.64 l 97 6.21 a.l9 6.66 6.4u 7.o5 LESS: DXRECLT[ON .46 .84 .88 .41 2.(A 3.12 3.53 3.62 3 99 INCXKE FORE DCrF1T (.41) .57 .96 1.06 3.33 3.u7 3.13 2.58 3.f6 ESS: DI llESf .87 .90 1.35 1.38 4.25 4.42 4.72 4.45 4.93 NET INDE (IDS) (L.28) (33) (.39) (.32) (-92) (L.35) (i 59) (1.87) (L.27) - - - _in m WA? Ta=S MAY DIIR DUE 1M E1OltWNC - 44 - IASHEMTrE KfGGUM (P JORDW ANNEX 1 - Table 8 of 12 QUFTEPl AMhAN WA SlUPLY & SewtERAE pET= l.HGE ANU EXPkIfTURE SRIr GREATER AMMAN SEWEE PERATIONS 1982 1983 1984 1985 1986 1987 ).988 1989 1990 SEWER CZ4NECrIONS 24,650 30 030 43,500 58,400 75,800 82 400 89,40D 96,700 103,4UU DIlABLE SEWAGE FLOW (MOM) 7.88 9.61 11.59 13.87 16.40 19.35 22.59 26.23 30.45 AVERACE RATE JD/M3 .030 .030 .043 .U55 .114 .126 .143 .L49 .185 -----I MILLLONS--- REVM ES :PiRATIW REVElNE .24 .29 .50 .77 1.87 2.44 3.22 3.91 5.64 IER INiOME 1.29 1.30 2.03 1.97 1.84 1.72 1.70 1.24 .9U 7U=L REVENUES 1.53 1.59 2.53 2.74 3.71 4.16 4.92 5.15 6.54 SAIARIES .86 .94 1.02 1.1L 1.21 1.32 1.44 1.57 1.71 IOWEHL L5 .16 .19 .22 .26 .31 .36 .42 .49 CEHDCALS .05 .05 .06 .07 .09 .10 .1L2 .14 .'6 KADUrEANCE .16 .17 .21 .24 .25 .26 .27 .73 .'4 A1~IIAll1R&TION .06 .06 .07 .07 .08 .U8 .09 .LO .10 1L EXPEDrfUPES 1.28 1.38 1.55 1.71 1.89 2.07 2.28 2.96 3.20 LtI BEFBORE DEPRECIATIO .25 .Z1 .98 1.02 1.82 2.09 2.64 2.19 3.34 LESS: DCPILATINt .26 .29 .35 .40 .43 .45 .48 .91 .96 INCOM BEFLE TINrEr (.Ol) (.Us) .63 .62 1.39 1.b4 2.16 1.28 2.36 IND= .28 .40 .72 .71 .69 .66 .60 .36 .62 NET INDNSE (LOSS) (.29) (.48) (.09) (.0U) .70 .98 1.56 .90 1.76 DTE:lUrAIS NAY DIFFER IUE 1[) RDINDING - 45 - IiASrrM KDXU OF JO ANNEX 1 .__ .............. _ Table 9 of 12 GRMM AMKN WAT5 SUPPLY 6 SIWIE 1OM= INOI AD SLOUflN EMW 1982 1983 1984 1985 1986 19b7 1988 1989 199U UWTER PWIE (MaM 59.97 75.40 81.14 8b.79 92.64 99.43 105.UZ 111.33 118.25 UNACCOUNTED (PERCENT) 4b 41 39 38 37 37 35 34 33 TAWIR SALES(IC) 3.83 2.11 2.20 2 30 2.41 2.52 2.64 2 77 2.91 [MAIL SALES (1C) 32.67 44.51 49.42 53.56 58.07 b2.A8 b7.97 73.40 79.34 IMIAME SZ UCE (C.) 7.88 9.61 11.59 15.56 18.29 24.61 31.24 38 19 45.99 ND. OF CXiIIErICusS-VAT51 1l 080 218,330 231,070 241 340 251,950 261. 50 274,730 359.640 3U5,050 NO. OF COXliDONS-SEME 24,650 30.030 43,500 58.400 75,800 89 4A 107.700 126.749 145 680 TANKUL RATE(JDA/2) .065 .070 .078 .086 .091 .096 .102 .107 .111 AVE.V4AE RETAIL(JD/dMA) .208 .239 .264 .267 .367 .376 A4W .408 .431 AVE.SEUER SIRCHARGZE(JD/O) .03D .030 .043 .U73 .128 .158 .9L .218 .253 AVL. SEW. PRE(JD/Oi) .20L .176 .230 .210 .238 .238 .W8 .266 .286 ----.1) KU.Y.O DEVEWES TkNKI03 SALES .25 .15 .L/ .20 .22 .24 ..17 .3U .33 IHABIL SALES 0.80 10.64 13.06 14.28 21.32 23.62 27.22 29.97 34.18 SEWIEAQ SUIUUU;E .24 .29 .50 L 14 2.34 3.89 6.2U 8.34 1L. uZ JCER wIamE 1.66 1.81 2.62 2.63 2.55 2.56 2.63 2.52 2.31 OOYT.SUBSIDY 1.61 2.07 2.5u 2.33 2.35 2.41 2.25 2.30 2.35 1XYAL REVJHIES lO.55 14.96 18.85 20.57 2W.77 3Z.72 38.77 43.43 5U.79 UATER PURCHASES .06 .06 - - - - SALARIES 4.68 5.57 6.15 b.67 7.36 8.42 9.42 10.43 Ll.51 EX113U;Y 3.00 3.43 4.0b 4.57 5.50 7.15 8.80 10.68 1.2.b CEHUCAIS . 4 .18 .23 .25 .35 .45 .60 .77 .97 MINTi7mmaB 1.81 2.12 2.40 2.60 2.81 3. 3 3.63 4.5U 4.9b AMMrISM^A'TIM .65 .81 .95 L.02 1.23 1.38 1.58 1. 78 2.03 "MLAL EXPENUURES 10.34 12.17 13.79 15.11 17.25 20.53 24.W3 28.16 32.35 2h(XIE RUIE DEPHECJTIOtl .21 2.79 5.06 5.46 U.52 12.19 14 74 15.27 18.44 LES;&PEPURCITION 2.64 3.17 3.47 3.78 5.68 6.98 7.95 8 99 9.33 DINOn BEUMR AREr (2.43) (.38) 1.59 1.o8 5.64 5.21 6.79 6.L 9.Lt TESS: INrEESr 1. 52 1.82 2.74 2.73 5.56 5.70 7.50 7.66 8.71 NEr INfLE (LOSSES) (3.95) (2.20) (1.15) (L.05) .08 (.49) (.71) (1.38) .Wa OfkBATEIN RATID 1.23 1.03 .92 .92 .80 .84 .52 .86 .b2 NMGElmIS rAY DUF ME 1D XO)II - 46 - HAWsmfr k 2 (F .M ANNEX 1 Table 10 of 12 :EAT I fhWA 11 SUlLY *. fAGAE NRWEr SDUc A ANLDIM OF FMI 1982 1.983 1984 1985 1986 1987 1968 1919 1990 1984-989 FISCAL YEIR INDLIS DOZEt0ER 31 SOURCS OF PUE MM&RA S0WRCS IEr OPRAT1C ILWE (2.43) (.38) 1.59 1.68 5 64 5.21 6.79 6.28 9.11 27.19 AIrIIPPZCAIQN 2.o4 3.L7 3.47 3.78 5.8a 6.98 7.95 8 99 9.33 37.u5 IUAL DI2BNALS2SW .2I 2.79 5.06 5.46 11.52 12. 19 14.74 5. Z7 1844 14.. mV lfly C1Th1UMIUQ 5.46 3.U3 L0.10 L L5. 48.15 W. L7 8.LL 6.65 54. 95.57 CIUUE CCIEIumurLNS .22 .32 .54 .65 .95 .96 1.91 1.25 .73 6.29 IXRRW= LOMB 2.21 7.07 12.29 16.2 19.45 14.74 6.17 Z.b3 1.32 71.29 4iHER tWamE - - - - 39.22 4.Sb 7.98 4.56 3.48 56.3Z MTALSOUkCES OF FUKS S.11 U3.21 27.99 37.43 119.29 42.61 38.93 30.45 29.26 29b.72 - - -- -- APPLItATmI Or FUNL CAiTIAL EXP0DLIJTRES 3.67 9.A8 24.23 33.97 110.16 32 51 24.32 15.06 11 41 240.2b DUSREAE D)EEMSE) IN *ORU;NC CAQPrAL 2.51 .61 (.45) (.90) .uI .21 .71 1.37 .56 .95 *EE SERVII:E INThRESr 1.52 1.82 2.74 2.73 5.5b 5.70 7.50 7.66 b.71 31.90 ANCRTI2ATION .41 1.50 1.47 1.03 3.56 4.19 6.40 0.35 6.58 23.W IurAL 1.93 3.32 4.21 4.36 9.12 9.89 13.90 14.01 17.29 550U IUTAL AIFPCTXltIN OF RNn 8.L1 13.21 27.,A 37.43 tL1.29 42.01 35.93 30.46 29.20 296.71 Ir SERVICE CERGE (TIN .L1 84 1.20 1.25 1.6 1.23 1.U6 10u9 1.07 7.10 NlMU -.EUrAS MAY DIFFIR WE 10 BOUDLi - 47 - Ensl u WJ ANNEX I Table 11 of 12 GIEAIU MM~t VAM SMVIY & S8142Wh KILkr o sLr h S sizr DUN1 SH13r WA1U AU11WRfTY CA1KSLI3ATED 1982 1983 1984 19835 198b L987 1968 1989 1990 -----.1 MHILLlONS----- lA INDINC DECMR 31 ASSES CSSL FLED ASSEM-WAIR 92.38 97.77 105.93 117.44 191.47 Z15.33 255.72 271.31 279.17 LFJS:IrECX4TQI-ATE 14.72 17.O LS.72 19.1W 24.55 30.32 35.73 42.51 49.54 ICI FDX) ASSE1TS4A1R 77.66 80.17 90.21 98.34 166.92 185.U1 219.9 228.80 230.33 CROS FLIED ASSrS-SEW. 8.97 11 53 Lb.13 16.S3
Groupe de la Banque mondiale · Staff Appraisal Report
Jordan - Greater Amman Water Supply and Sewerage Project
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Groupe de la Banque mondiale
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Staff Appraisal Report
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Jordanie
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Banque mondiale